DBCC expecting debt-to-GDP ratio of 63% in 2025, Senate plenary told

DEBT as a share of gross domestic product (GDP) could come in at 63% by yearend following the growth slowdown in the third quarter, a senior legislator said, citing projections by the Development Budget Coordination Committee (DBCC).

- Katherine K. Chan

Senator Sherwin T. Gatchalian, who chairs the Senate finance committee, said the DBCC's estimate indicates a continued breach of the 60% threshold deemed sustainable for developing countries, despite expectations that the government will hit its budget deficit target.

"Despite the headwinds, natural calamities (and) the lower growth forecast, we will still end up with (a) 5.5% deficit and also (a) debt-to-GDP ratio of 63%," Mr. Gatchalian said during a hearing on the 2026 national budget on Thursday.

The Department of Finance had projected a ratio of 61.3% for the year.